Nebraska Administrative Code
Topic - REVENUE, DEPARTMENT OF
Title 350 - Nebraska Department of Revenue, Property Assessment Division
Chapter 30 - Property Valued By The State Regulations
Section 350-30-006 - RAILROADS

Universal Citation: 350 NE Admin Rules and Regs ch 30 ยง 006

Current through March 20, 2024

006.01 Taxpayer's Responsibilities

006.01A On or before January 1 of each year, a railroad company shall report to the assessor all nonoperating taxable property located in the county. Nonoperating property shall include any railroad track mileage abandoned or other property not contributing to the operations of the railroad.

006.01B On or before April 15 of each year, a railroad company engaged in business in Nebraska shall furnish a complete report to the Property Tax Administrator on prescribed forms.

006.01C On or before June 1 of each year, a railroad company whose line runs through or into Nebraska shall furnish to the Property Tax Administrator a report showing the total number of miles traveled by each class of cars for every car line company on their lines in this state during the preceding year ending December 31.

006.01D Any sale of railroad operating property shall be reported by the purchaser to the Property Tax Administrator within 30 days from the date of the sale. The purchaser shall identify the seller, date of the sale, any change in name of the railroad, the miles of main track and sidetrack located in each taxing subdivision, and the purchase price.

006.02 Property Tax Administrator's and Tax Commissioner's Responsibilities And Penalties

006.02A The Tax Commissioner may assess a penalty, in the amount of one hundred ($ 100.00 ) dollars per day but not exceeding ten thousand ($10, 000.00 ) dollars, for failure or refusal to furnish complete and accurate information required by the report specified in REG-30-006.01B. The penalty is collected by the Tax Commissioner. Upon written request by the railroad company, the Tax Commissioner may waive the penalty in whole or in part for good cause shown.
006.02A(1) In the event the railroad company shall feel aggrieved as to the assessment of a penalty, an appeal may be filed with the Tax Commissioner pursuant to the Practice and Procedure Regulation, Chapter 90.

006.02B Upon written request and for good cause shown, the Property Tax Administrator may allow up to a 15 day extension of time to file the report required in REG-30-006.01B. Such extension shall not exceed 15 days after April 15.

006.02C Upon written request and for good cause shown, the Property Tax Administrator may allow up to a thirty (30) day extension of time to file the report required in REG-30-006.01C. Such extension shall not exceed thirty (30) days after June 1.

006.02D The Property Tax Administrator may request, in writing, additional information regarding any sale of railroad property or other information needed to ascertain valuation.

006.02E The Property Tax Administrator shall provide to each assessor a report of main track and sidetrack miles, located in each taxing subdivision, prior to certification of distributed value.

006.02F Beginning January 1, 2001, the Property Tax Administrator shall annually calculate the density factor used in distributing value along the line based upon an average of the most recent three years. Density factors shall be determined by ton miles traveled over a route, measured by the number of tons of revenue freight moved. If a density factor cannot be determined in this manner, the Property Tax Administrator may use other information to develop a fair and reasonable factor.

006.02G All information reported by the railroad company, not available from other public sources, and any memorandum thereof shall be confidential and available to taxing officials only.

006.03 Assessment

006.03A The Property Tax Administrator shall annually ascertain the taxable unit value of the railroad company, as of January 1, 12:01 a.m., by determining the sum of:
006.03A(1) The actual value of the operating property allocated to Nebraska, less a deduction for the actual value of the tangible personal property; and

006.03A(2) The net book value of all tangible personal property of the company allocated to Nebraska. For more information regarding the valuation of taxable personal property, see Personal Property Regulations, Chapter 20.

006.03B The deduction for the actual value of tangible personal property from the railroad's unit value shall be based on a factor representing the company's net book value of personal property divided by the net book value of their total operating property as determined from its balance sheet or regulatory reports.

006.03C The formula for allocation of taxable value shall be established by the Property Tax Administrator on a fair and reasonable basis. The Property Tax Administrator may adjust the formula, by industry or by company, if such adjustment is warranted.

006.03D On or before July 1, each railroad company shall be mailed a draft appraisal of its allocated taxable value as determined by the Property Tax Administrator.

006.03E The company may meet informally with the Property Tax Administrator through July 12 to discuss the proposed valuation or method of allocation.

006.03F On or before July 15, the Property Tax Administrator shall send each railroad company a final appraisal showing total allocated taxable value for property tax purposes.

006.03G The railroad company's allocated net book taxable value for personal property is subject to an adjustment by the Property Tax Administrator as follows:
006.03G(1) The Property Tax Administrator shall determine the ratio of the net book taxable value of all income producing tangible depreciable personal property subject to taxation in the state, divided by the actual value of all income producing tangible personal property in the state, excluding rail transportation property.

006.03G(2) The Property Tax Administrator shall determine the ratio of the company's net book taxable personal property divided by the actual value of its personal property.

006.03G(3) If the company's ratio of taxable personal property exceeds the state's ratio of taxable personal property by more than five (5) percent, the Property Tax Administrator may adjust the company's taxable personal property value to the state's level of taxable personal property.

006.03H The railroad company's Nebraska allocated actual value, excluding the actual value of the tangible personal property, shall be equalized by the Tax Equalization and Review Commission.

006.03I The Property Tax Administrator shall distribute the railroad's total taxable value, equalized and adjusted pursuant to REG-30-006.03G and REG-30-006.03H, to the counties in the following manner:
006.03I(1) Five (5) percent shall be distributed to all taxing subdivisions where the railroad company has investments in general office buildings or machine and repair facilities proportionate to the company's investment in general office buildings and machine and repair facilities designed to perform heavy or programmed maintenance in the state;

006.03I(2) The balance is to be distributed to all taxing subdivisions where the railroad has track located, based on a formula in which fifty (50) percent of the valuation is based on miles of main track and sidetrack and fifty (50) percent of the valuation is based on a density factor on miles of main track. The value per mile of main track shall equal twice the value per mile of sidetrack as computed in this section. The value per mile of sidetrack shall equal the value of the line divided by the following quantity: The number of miles of sidetrack plus two times the number of miles of main track.

006.03J On or before August 10, the Property Tax Administrator shall certify to each railroad company and to each assessor in which the railroad company is located, the taxable value as distributed to the county and taxing subdivisions therein to be used as a basis for levy.

006.04 Taxation Of Distributed Value

006.04A The assessor shall include the distributed taxable value of the railroad company, as certified by the Property Tax Administrator, on the personal property tax list. The taxes so levied shall be collected by the county and shall be due and payable in the same manner as personal property taxes pursuant to Neb. Rev. Stat. Sections 77-203 and 77-204. Interest shall accrue on any delinquent tax at the rate specified in Neb. Rev. Stat. Section 45-104.01.
006.04A(1) From the date the taxes are due and payable, they shall become a first lien upon the personal property of the railroad company until paid.

006.05 Appeals

006.05A In the event the railroad company shall feel aggrieved as to the valuation or method of allocation established, an appeal may be filed with the Tax Commissioner pursuant to the Practice and Procedure Regulation, Chapter 90, on or before August 1.

006.05B The Tax Commissioner shall act upon the appeal and shall issue a written order a copy of which shall be mailed to the company within seven (7) days after the date of the order. The Tax Commissioner's order may be appealed within thirty (30) days after the date of the order to the Tax Equalization and Review Commission pursuant to Neb. Rev. Stat. Section 77-5013.

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